Pioneer '96 results reflect acquisition

Electronic News, May 6, 1996

Cleveland--Pioneer-Standard Electronics Inc. reported FY96 net income rose slightly to $25.25 million, or $1.09 per share, from $25.01 million, or $1.09 per share, in FY95. Sales for the year ended March 31, 1996 grew 33 percent to $1.11 billion from $832.2 million.

The company reported operating income rose 19 percent for the year, net being achieved despite a non-recurring after-tax provision of $1.23 million, or 5 cents per share, for discontinuance costs linked to the acquisition of Pioneer Technologies Group Inc., a former 50 percent-owned affiliate, on Nov. 30, 1995.

Sales and net income for the fiscal year include the four-month results of the acquired affiliate.

4Q96 net income rose 5 percent to $7.6 million from $7.3 million in 4Q95. Net income in the final period included 100 percent of Pioneer Technologies' earnings; in the prior year, net income included only the 50 percent equity interest in the affiliate's earnings. On a per-share basis, 4Q96 net income was 33 cents versus 32 cents in the same quarter a year ago. Operating profit in the period rose 31 percent on sales of $381.7 million versus $241.5 million.

FY96 sales without the four-month contribution of the affiliate were $974.4 million, up 17 percent from last year. 4Q96 sales without the three-month contribution of the affiliate were $275.9 million, up 14 percent from the year-ago final period. Per-share amounts in both the quarter and year were adjusted to reflect a 3-for-2 split of common shares effective Sept. 6, 1995.

Prior to the acquisition, Pioneer included 50 percent of the affiliate's net income on the equity method and sales of the two companies were not consolidated for reporting purposes.

Operating expenses for the quarter were $50.4 million versus $31.8 million in the year-ago quarter. For the year, they came to $150.7 million versus $111.3 million.

Proforma sales of the two organizations for the periods ended March 31 are $381.7 million versus $338.4 million in the year-ago quarter.